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Balance Sheet

Sherwin-Williams Co (The) (NYS: SHW)
Report Date Y3 Y2 Y1 Horizontal Analysis (2016-2015) Horizontal Analysis (2016-2015) Vertical Analysis Y3 Vertical Analysis Y3 Vertical Analysis Y2 Vertical Analysis Y2
Scale Thousands Thousands Thousands
Cash & cash equivalents 889,793 205,744 40,732 332.5% 0 13.2% 0 3.6% 0
Accounts receivable, gross 1,271,437 1,163,695 1,184,335 9.3% 0 18.8% 0 20.1% 0
Less: allowance for doubtful accounts 40,450 49,420 53,770 -18.2% 0 0.6% 0 0.9% 0
Accounts receivable, less allowance 1,230,987 1,114,275 1,130,565 10.5% 0 18.2% 0 19.2% 0
Finished goods 898,627 840,603 841,784 6.9% 0 13.3% 0 14.5% 0
Work in process & raw materials 169,699 177,927 191,743 -4.6% 0 2.5% 0 3.1% 0
Inventories 1,068,326 1,018,530 1,033,527 4.9% 0 15.8% 0 17.6% 0
Deferred income taxes 57,162 87,883 109,087 -35.0% 0 0.8% 0 1.5% 0
Other current assets 381,030 232,442 252,869 63.9% 0 5.6% 0 4.0% 0
Total current assets 3,627,298 2,658,874 2,566,780 36.4% 0 53.7% 0 45.9% 0
Goodwill 1,126,892 1,143,333 1,158,346 -1.4% 0 16.7% 0 19.7% 0
Intangible assets 255,010 255,371 289,127 -0.1% 0 3.8% 0 4.4% 0
Deferred pension assets 225,529 244,882 250,144 -7.9% 0 3.3% 0 4.2% 0
Other assets 421,904 447,533 420,625 -5.7% 0 6.2% 0 7.7% 0
Land 115,555 119,530 125,691 -3.3% 0 1.7% 0 2.1% 0
Buildings 714,815 696,202 698,202 2.7% 0 10.6% 0 12.0% 0
Machinery & equipment 2,153,437 2,026,617 1,952,037 6.3% 0 31.9% 0 35.0% 0
Construction in progress 117,126 81,082 59,330 44.5% 0 1.7% 0 1.4% 0
Property, plant & equipment, gross 3,100,933 2,923,431 2,835,260 6.1% 0 45.9% 0 50.5% 0
Less: allowances for depreciation 2,005,045 1,881,569 1,814,230 6.6% 0 29.7% 0 32.5% 0
Property, plant & equipment, net 1,095,888 1,041,862 1,021,030 5.2% 0 16.2% 0 18.0% 0
Total assets 6,752,521 5,791,855 5,706,052 16.6% 0 100.0% 0 100.0% 0
Short-term borrowings 40,739 39,462 679,436 3.2% 0 0.6% 0 0.7% 0
Accounts payable 1,034,608 1,157,561 1,042,182 -10.6% 0 15.3% 0 20.0% 0
Compensation & taxes withheld 398,045 338,256 360,458 17.7% 0 5.9% 0 5.8% 0
Accrued taxes 76,765 81,146 86,744 -5.4% 0 1.1% 0 1.4% 0
Current portion of long-term debt 700,475 3,154 3,265 22109.1% 0 10.4% 0 0.1% 0
Other accruals 578,547 522,280 508,581 10.8% 0 8.6% 0 9.0% 0
Total current liabilities 2,829,179 2,141,859 2,680,666 32.1% 0 41.9% 0 37.0% 0
Senior notes 1,086,473 1,795,696 998,055 -39.5% 0 16.1% 0 31.0% 0
Debentures 122,436 122,872 122,869 -0.4% 0 1.8% 0 2.1% 0
Promissory notes 2,417 1,628 1,791 48.5% 0 0.0% 0 0.0% 0
Long-term debt 1,211,326 1,920,196 1,122,715 -36.9% 0 17.9% 0 33.2% 0
Postretirement benefits other than pensions 250,397 248,523 277,892 0.8% 0 3.7% 0 4.3% 0
Other long-term liabilities 583,178 613,367 628,309 -4.9% 0 8.6% 0 10.6% 0
Total Liabilities 4,874,080 4,923,945 4,709,582 -1.0% 0 72.2% 0 85.0% 0
Common stock 116,563 115,761 114,525 0.7% 0 1.7% 0 2.0% 0
Convertible preferred stock - - -
Unearned ESOP compensation - - -
Other capital 2,488,564 2,330,426 2,079,639 6.8% 0 36.9% 0 40.2% 0
Retained earnings 4,049,497 3,228,876 2,424,674 25.4% 0 60.0% 0 55.7% 0
Treasury stock, at cost (4,235,832) (4,220,058) (3,150,410) 0.4% 0 -62.7% 0 -72.9% 0
Foreign currency translation adjustment - (482,629) (354,384) -8.3% 0
Net actuarial gains (losses) related to pension & other postretirement benefit plans - (104,346) (118,167) -1.8% 0
Unrealized net gains on marketable equity securities - (120) 593 -0.0% 0
Cumulative other comprehensive income (loss) (540,351) (587,095) (471,958) -8.0% 0 -8.0% 0 -10.1% 0
Total shareholders' equity 1,878,441 867,910 996,470 116.4% 0 27.8% 0 15.0% 0
0 0 0
4.2 4.2 4.5

Income Statement

Sherwin-Williams Co (The) (NYS: SHW)
Report Date Y3 Y2 Y1 Horizontal Analysis (2016-2015) Horizontal Analysis (2016-2015) Vertical Analysis Y3 Vertical Analysis Y3 Vertical Analysis Y2 Vertical Analysis Y2
Scale Thousands Thousands Thousands
Net sales 11,855,602 11,339,304 11,129,533 4.6% 0 100.0% 0 100.0% 0
Cost of goods sold 5,933,337 5,780,078 5,965,049 2.7% 0 50.0% 0 51.0% 0
Gross profit 5,922,265 5,559,226 5,164,484 6.5% 0 50.0% 0 49.0% 0
Selling, general & administrative expenses 4,159,435 3,913,518 3,822,966 6.3% 0 35.1% 0 34.5% 0
Provisions for environmental matters, net 42,932 31,071 36,046 38.2% 0 0.4% 0 0.3% 0
Gain (loss) on disposition of assets 30,564 803 (1,436) 3706.2% 0 0.3% 0 0.0% 0
Total other general expense - net 12,368 30,268 37,482 -59.1% 0 0.1% 0 0.3% 0
Impairment of trademarks & goodwill 10,688 - 0 - 0 0.1% 0
Operating Income 1,739,774 1,615,440 1,304,036 7.7% 0 14.7% 0 14.2% 0
Interest expense 154,088 61,791 64,205 149.4% 0 1.3% 0 0.5% 0
Interest & net investment income 4,960 1,399 2,995 254.5% 0 0.0% 0 0.0% 0
Dividend & royalty income 4,573 3,668 4,864 24.7% 0 0.0% 0 0.0% 0
Net income (expense) of financing activities (8,667) (11,091) (11,367) -21.9% 0 -0.1% 0 -0.1% 0
Foreign currency related transaction gains (losses) (7,335) (9,503) (3,603) -22.8% 0 -0.1% 0 -0.1% 0
Other income 25,279 23,880 37,524 5.9% 0 0.2% 0 0.2% 0
Other expense 9,263 13,036 12,018 -28.9% 0 0.1% 0 0.1% 0
Total other income (expense), net 4,587 (6,082) 15,400 -175.4% 0 0.0% 0 -0.1% 0
Income (loss) before income taxes - domestic 1,504,990 1,440,511 1,113,527 4.5% 0 12.7% 0 12.7% 0
Income (loss) before income taxes - foreign 90,243 108,455 144,698 -16.8% 0 0.8% 0 1.0% 0
Income (loss) before income taxes 1,595,233 1,548,966 1,258,226 3.0% 0 13.5% 0 13.7% 0
Current provision for (benefit from) income taxes - federal 438,244 399,677 308,283 9.6% 0 3.7% 0 3.5% 0
Current provision for (benefit from) income taxes - foreign 31,125 30,145 53,045 3.3% 0 0.3% 0 0.3% 0
Current provision for (benefit from) income taxes - state & local 61,402 60,319 50,049 1.8% 0 0.5% 0 0.5% 0
Total current provision for (benefit from) income taxes 530,771 490,141 411,377 8.3% 0 4.5% 0 4.3% 0
Deferred provision for (benefit from) income taxes - federal (56,891) 13,505 (14,974) -521.3% 0 -0.5% 0 0.1% 0
Deferred provision for (benefit from) income taxes - foreign (2,121) (10,752) (7,361) -80.3% 0 -0.0% 0 -0.1% 0
Deferred provision for (benefit from) income taxes - state & local (9,229) 2,223 3,297 -515.2% 0 -0.1% 0 0.0% 0
Total deferred provision for (benefit from) income taxes (68,241) 4,976 (19,038) -1471.4% 0 -0.6% 0 0.0% 0
Income taxes 462,530 495,117 392,339 -6.6% 0 3.9% 0 4.4% 0
Net income (loss) 1,132,703 1,053,849 865,887 7.5% 0 9.6% 0 9.3% 0
0 0 0
2.7 2.8 2.7

Cash Flow Statement

Sherwin-Williams Co (The) (NYS: SHW)
Report Date Y3 Y2 Y1
Scale Thousands Thousands Thousands
Net income (loss) 1,132,703 1,053,849 865,887
Depreciation 172,074 170,323 169,087
Amortization of intangible assets 25,637 28,239 29,858
Impairment of trademarks & goodwill 10,688 - -
Amortization of credit facility & debt issuance costs 63,759 - -
Provisions for environmental-related matters 42,932 31,071 36,046
Provisions for (net credit from) qualified exit costs 3,038 9,761 13,578
Deferred income taxes (68,241) 4,976 (19,038)
Defined benefit pension plans net cost (credit) 14,851 6,491 990
Stock-based compensation expense 72,109 72,342 64,735
Net increase (decrease) in postretirement liability (12,373) (6,645) (718)
Increase (decrease) in non-traded investments 64,689 65,144 63,365
Loss (gain) on disposition of assets (30,564) (803) 1,436
Other net income adjustments 5,101 6,711 203
Accounts receivable (113,855) (56,873) (80,252)
Inventories (52,577) (40,733) (101,112)
Accounts payable (118,893) 160,111 78,603
Accrued taxes (2,159) 4,606 13,187
Accrued compensation & taxes withheld 60,632 (13,128) 29,513
Refundable income taxes (1,343) 19,230 (36,601)
DOL settlement accrual - - -
Other working capital accounts 56,215 (955) (20,029)
Costs incurred for environmental-related matters (15,178) (11,995) (9,676)
Costs incurred for qualified exit costs (6,267) (11,200) (10,882)
Other cash flows from operating activities 5,594 (43,059) (6,652)
Net cash flows from operating activities 1,308,572 1,447,463 1,081,528
Capital expenditures (239,026) (234,340) (200,545)
Acquisition of businesses, net of cash acquired - - -
Proceeds from sale of assets 38,434 11,300 1,516
Increase (decrease) in other investments (103,182) (65,593) (111,021)
Net cash flows from investing activities (303,774) (288,633) (310,050)
Net increase (decrease) in short-term borrowings (899) (630,226) 591,423
Proceeds from long-term debt 500 797,514 1,474
Payments of long term debt (1,111) - (500,661)
Payment for credit facility & debt issuance costs (65,119) - -
Payments of cash dividends (312,082) (249,647) (215,263)
Proceeds from stock options exercised 86,831 89,990 100,069
Income tax effect of stock-based compensation exercises & vesting - 89,691 68,657
Treasury stock purchased - (1,035,291) (1,488,663)
Other financing activities (15,473) (42,384) (24,111)
Net cash flows from financing activities (307,353) (980,353) (1,467,075)
Effect of exchange rate changes on cash (13,396) (13,465) (8,560)
Net increase (decrease) in cash & cash equivalents 684,049 165,012 (704,157)
Cash & cash equivalents at beginning of year 205,744 40,732 744,889
Cash & cash equivalents at end of year 889,793 205,744 40,732

Ratios

RATIO ANALYSIS
Y3 Y3 Y2 Y2
LIQUIDITY
Working Capital 798119 0 517015 0
Current Ratio 1.28 0 1.24 0
ASSET MANAGEMENT & PROFITABILITY
Inventory Turnover 5.55 0 5.67 0
Total Asset Turnover 1.76 0 1.96 0
Days Sales Outstanding 37.90 0 35.87 0
Return on total Assets 0.17 0 0.18 0
Profit margin 0.10 0 0.09 0
Earnings per Share (EPS) 12.33 0 11.43 0
DEBT MANAGEMENT
Debt to Assets Ratio 2.59 0 5.67 0
Times Interest Earned 11.35 0 26.07 0
MARKET VALUE
Market /Book 13.14 0 27.58 0
Price/Earning 21.79 0 22.71 0
ADDITIONAL INFORMATION
Weighted average shares outstanding - basic 91,839 92,197
Market Price per Share at Year End 268.74 259.6
0 0
6 6